26 www.resourceworld.com
F E B R U A R Y / M A R C H 2 0 2 0
INVESTMENT
L
ast year, $31.8-billion worth of gold-
mining deals were announced, the
largest on record for the Canadian
gold sector, marking 2019 as one of the gold
industry's most transformative years.
Spurred by two blockbuster deals,
beginning with Barrick Gold Corp.'s
[ABX-TSX; GOLD-NYSE] $18 billion
merger with Randgold in January, and
Newmont Mining acquiring Goldcorp for
$10 billion in April to create Newmont
Goldcorp Corp. [NGT-TSX; NEM-NYSE],
M&A momentum continued throughout
the year resulting in 348 deals.
Some of the larger transactions included
Pan American Silver Corp.'s [PAAS-TSX,
NASDAQ] transaction to acquire Tahoe
Resources in a deal worth US $1 billion,
and in March Barrick Gold and Newmont
Mining created a gold joint venture target-
ing US $5 billion of synergies over 20 years.
In April, Yamana Gold Inc. [YRI-TSX;
AUY-NYSE] agreed to sell its its Chapada
Mine in Brazil to Lundin Mining Corp.
[LUN-TSX; LUNMF-OTC; LUMI-Sweden]
for US$1 billion, and in May Australia's St.
Barbara [SMB-ASX] announced it would
be acquiring Nova Scotia-based Atlantic
Gold in a transaction valued at approxi-
mately CAD $722 million. In September,
Osisko Gold Royalties Ltd. [OR-TSX,
NYSE] announced it would be acquiring
British Columbia junior Barkerville Gold in
a transaction worth CAD $338 million.
And even as 2019 neared its conclusion,
gold acquisitions kept coming, Australian-
based Evolution Mining [EVN-ASX]
closed a deal to acquire Newmont
Goldcorp's Canadian Red Lake gold min-
Gold sector consolidation predicted
to continue into 2020
AS 2019 DREW TO A CLOSE, THE CONSOLIDATION OF THE GOLD SECTOR PICKED UP SPEED,
CREATING INVESTING OPPORTUNITIES FOR INFORMED SPECULATORS.
by Robert Simpson
